Appendix C

32 CFR Parts 174,175, and 176
32 CFR Parts 174, 175, and 176

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C-2 December 1997
32 CFR Part174:

Revitalizing Base Closure Communities

Part 174—REVITALIZING BASE CLOSURE COMMUNITIES

Sec.

174.1 Purpose.

174.2 Applicability.

174.3 Definitions.

174.4 Policy.

174.5 Responsibilities.

Authority: 102 Stat. 2623, 104 Stat. 1808, 108 Stat. 4326, and 107 Stat. 1909

Section 174.1 Purpose.

(a) This part:

(1)

(2)

(3)

Establishes policy and assigns responsibilities under the President’s Five-Part Plan, “A Program to

Revitalize Base Closure Communities,” July 2, 1993,1 to speed the economic recovery of communities

where military bases are slated to close.

Implements 107 Sta~ 1909, National Defense Authorization Act for Fiscal Year 1994, Title XXIX and

The Base Closure Community Redevelopment and Homeless Assistance Act of 1994 (Pub. L. 103-421).

Authorizes the publication of DoD 4165.66-M, “Base Reuse Implementation Manualj” in accordance with

DoD 5025. 1-M; “DoD Directive System Procedures,” August 1994.

Section 174.2 Applicability.

This part applies to the Oftlce of the Secretary of Defense, the Military Departments, the Chairman of the Joint

Chiefs of Staff, the Unified Combatant Commands, the Defense Agencies, and the DoD Field Activities (hereafter

referred to collectively as “the DoD Components”).

Section 174.3 Definitions.

(a) Closure. All missions of the installation have ceased or have been relocated. All personnel positions (military,

civilian and contractor) have either been eliminated or relocated, except for personnel required for caretaking,

conducting any ongoing environmental cleanup, and disposal of the base, or personnel remaining in authorized

enclaves.

* Available from the Office of the Assistant Secretary of Defense, The Pentagon, Room ID760, Washington, DC

20301-3300; email: “base_reuse@acq. osd.mil”

December 1997 C-3
32 CFR Part 174: Revitalizing Base Closure Communities

(b) Realignment. Any action that both reduces and relocates functions and DoD civilian personnel positions, but

does not include a reduction in force resulting from workload adjustments, reduced personnel or funding levels,

skill imbalances, or other similar cause. A realignment may terminate the DoD requirement for the land and

facilities on part of an installation. That part of the installation shall be treated as “closed” for purposes of this

part.

Section 174.4 Policy.

It is DoD policy to:

(a)

(b)

Help communities impacted by base closures and realignments achieve rapid economic recovery through

effective reuse of the assets of closing and realigning bases — more quickly, more effectively and in ways

based on local market conditions and locally developed reuse plans. This will be accomplished by quickly

insuring that communities and the Military Departments communicate effectively and work together to

accomplish mutual goals of quick property disposal and rapid job generation.

This part does not create any rights or remedies and may not be relied upon by any person, organization, or

other entity to allege a denial of any rights or remedies other than those provided by Title XXIX of Pub. L.

103-160, or Pub. L. 103-421.

Section 174.5 Responsibilities.

(a) The Under Secretary of Defense for Acquisition and Technology shall issue DoD Instructions as necessary, to

further implement applicable public laws effecting base closure implementation, and shall monitor compliance

with this part. All authorities of the Secretary of Defense in Pub. L. 103-421 (108 Stat. 4326 et seq.); Pub. L.

103-160, Title XXIX (107 Stat. 1909 et seq.); Pub. L. 101-510, Section 2905 (104 Stat. 1813 et seq.); and Pub.

L. 100-526, Section 204 (102 Stat. 2627 et seq.), me hereby delegated to the Assistant Secretary of Defense for

Economic Security and may be delegated further.

(b) The Heads of the DoD Components shall advise their personnel with responsibilities related to base closures of

the policies set forth in this part.

C-4 December 1997
32 CFR Part175:

Revitalizing Base Closure

Communities—Base Closure

Community Assistance

Note: The italicized text waJ promulgated as a Proposed Rule on February 21, 1997 (62 FR 79666).

PART 175—REVITALIZING BASE CLOSURE COMMUNITIES-BASE CLOSURE COMMUNITY

ASSISTANCE

Sec.

175.1 Purpose.

175.2 Applicability.

175.3 Definitions.

175.4 Policy.

175.5 Responsibilities.

175.6 Delegations of authority.

175.7 Procedures.

Authority: 10 U.S.C. 2687 note.

Section 175.1 Purpose.

This part prescribes procedures to implement “Revitalizing Base Closure Communities” (32 CFR Part 174), the

President’s five-part community reinvestment program, and real and personal property disposal to assist the

economic recove~ of communities impacted by base closures and realignments. The expeditious disposal of real

and personal property will help communities get started with reuse early and is therefore critical to timely economic

recovery.

Section 175.2 Applicability.

This part applies to the OffIce of the Secretary of Defense, the Military Departments, the Chaimmn of the Joint

Chiefs of Staff, the Unified Combatant Commands, the Defense Agencies, and the DoD Field Activities (hereafter

referred to collectively as “the DoD Components”).

Section 175.3 Definitions.

(a) Base Closure LUW. The provisions of Title II of the Defense Authorization Amendments and Base Closure and

Realignment Act (Pub. L. 100-526, 102 Stat. 2623, 1() I_J.S.C. 2687 note), or the Defense Bme Closure and

Realignment Act of 1990 (Pub. L. 101-510, Part A of Title XXIX of 104 Stat. 1808, 10 U.S.C 2687 note).

December 1997 C-5
32 CFR Part 175: Revitalizing Base Closure Communities— Base Closure Community Assistance

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

@

(k)

(1)

Closure. All missions of the installation have ceased or have been relocated. All personnel positions (mili~,

civilian, and contractor) have either been eliminated or relocated, except for personnel required for caretaking,

conducting any ongoing environmental cleanup, and disposal of the base, or personnel remaining in authorized

enclaves.

Consultation. Explaining and discussing an issue, considering objections, modifications, and alternatives; but

without a requirement to reach agreement.

Date of approval. The date on which the authority of Congress to disapprove Defense Base Closure and

Realignment Commission recommendations for closures or realignments of installations expires under Title

XXIX of 104 Stat. 1808, as amended.

Excess properry. Any property under the control of a Military Department that the Secretary concerned

determines is not required for the needs of the Department of Defense.

Realignment. Any action that both reduces and relocates functions and DoD civilian personnel positions, but

does not include a reduction in force resulting from workload adjustments, reduced personnel or funding levels,

skill imbalances, or other similar cause. A realignment may terminate the DoD requirement for the land and

facilities on part of an installation. That part of the installation shall be treated as “closed” for this document.

Local Redevelopment Authorizy (LRA). Any authority or instrumentality established by state or local

government and recognized by the Secretary of Defense, through the Office of Economic Adjustment, as the

entity responsible for developing the redevelopment plan with respect to the installation or for directing

implementation of the plan.

Rurai. An area outside a Metropolitan Statistical Area.

Surplus property. Any excess property not required for the needs and the dkcharge of the responsibilities of

federal agencies. Authority to make this determination, after screening with all federal agencies, rests with the

Military Departments.

Communities in the Vicinity of the Installation. The communities that constitute the political jurisdictions

(other than the State in which the installation is located) that comprise the redevelopment authority for the

installation.

Installation. A base, camp, post, station, yard, center, homeport facility for any ship, or other activity under the

jurisdiction of the Department of Defense, including any leased facility. Such term does not include any facility

used primarily for civil works, rivers and harbors projects, flood control, or other projects not under the

primary jurisdiction or control of the Department of Defense.

Similar use. A use thar is comparable to or essentially the same as the use under the original lease.

Section 175.4 Policy.

It is DoD policy to help ccimmunities impacted by base closures and realignments achieve rapid economic recovery

through effective reuse of the assets of closing and realigning bases — more quickly, more effectively and in ways

based on local market conditions and locally developed reuse plans. This will be accomplished by quickly ensuring

that communities and the Military Departments communicate effectively and work together to accomplish mutual

goals of quick property disposal and rapid job generation. This regulation does not create any rights or remedies and

may not be relied upon by any person, organization, or other entity to allege a denial of any rights or remedies other

than those provided by Title XXIX of Pub. L. 103-160, or Pub. L. 103-421, or Title XXVII of Pub. L i04-106.

Section 175.5 Responsibilities.

(a) The Deputy Under Secretary of Defense (Industrial Affairs and Installations), after coordination with the

General Counsel of the Department of Defense and other ofilcials as appropriate, may issue such guidance and

instructions through the publication of a manual or other such document as may be necessary to implement

Laws, Directives and Instructions on the retention or disposal of real and personal property at closing or

realigning bases.

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DoD Base Reuse Imdementation Manual

(b) The Heads of the DoD Components shall ensure compliance with this part and guidance issued by the Assistant

Secretary of Defense for Economic Security on revitalizing base closure communities.

Section 175.6 Delegations of authority.

(a) The authority provided by Sections 202 and 203 of the Federal Property and Administrative Services Act of

1949, as amended (40 U.S.C. 483 and 484) for the utilization and disposal of excess and surplus property at

closing and realigning bases has been delegated by the Administrator, GSA, to the Secretary of Defense by

delegations dated March 1, 1989; October 9, 1990; September 13, 1991; and, September 1, 19952. Authority

under these delegations has been previously delegated to the Secretaries of the Military Departments, who may

delegate this authority further.

(b) Authorities delegated to the Deputy Under Secretary of Defense (industrial Affairs and ktallations)3 by

section 174.5 are hereby redelegate to the Secretaries of the Military Departments, unless otherwise provided

within this Part or other DoD directive, instruction, manual or regulation. These authorities may be delegated

further.

Section 175.7 Procedures.

(a) Ident.$cation of interest in real properry.

(1)

(2)

(3)

(4)

To speed the economic recovery of communities affected by closures and realignments, it is DoD policy

to identify DoD and federal interests in real property at closing and realigning military bases as quickly as

possible. The Military Department having responsibility for the closing or realigning base shall identify

such interests. The Military Department will keep the Local Redevelopment Authority (LRA) informed of

these interests. This section establishes a uniform process, with specified timelines, for identifying real

property which is excess to the Military Departments for use by other Department of Defense (DoD)

Components and other federal agencies, and for the disposal of surplus property for various purposes.

Upon the President’s submission of the recommendations for base closures and realignments to the

Congress in accordance with the Defense Base Closure and Realignment Act of 1990 (Public Law 101-

510), the Military Department shall send out a notice of potential availability to the other DoD

Components, and other federal agencies. The notice of potential availability is a public document and

should be made available in a timely basis, upon request. Federal agencies are encouraged to review this

list, and to evaluate whether they may have a requirement for the listed properties. The notice of potential

availability should describe the property and buildings that may be available for tiansfer. Installations

which wholly or in part are comprised of withdrawn and reserved public domain lands should implement

paragraph (a)( 12) of this section at the same time.

Military Departments should consider LRA input in making determinations on the retention of property

(size of cantonment area), if provided. Generally, determinations on the retention of property (or size of

the cantonment area) should be completed prior to the date of approval of the closure or realignment.

Within one week of the date of approval of the closure or realignment, the Military Department shall issue

a formal notice of availability to other DoD Components and federal agencies covering closing and

realigning installation buildings and property availabIe for transfer to other DoD Components and federal

z Available from the Base Closure and Community Reinvestment Ofice, 400 Army Navy Drive, Suite 200, Arlingtow

VA 2,2’.20.2; e mail: base_reuse@acq. osd.mil

3 A Deputy Secretary of Defense memorandum of May 16, 1996, “OUSD (Acquisition and Technology

Reorganization” disestablished the ofice of the Assistant Secretary of Defense for Economic Security and

established the oftke of the Deputy Under Secretary of Defense (Industrial Affairs and Installations). Copies are

available from the Base Closure and Community Reinvestment O@ce, 400 Army Navy Drive, Suite ZOO, Arlington,

VA 22202, e mail: base_reuse@acq. osd.mil

December 1997 C-7
32 CFR Part 175: Revitalizing Base Closure Communities—Base Closure Community Assistance

agencies. Withdrawn public domain lands, which the Secretary of the Interior has determined are suitable

for return to his jurisdiction, will not be included in the notice of availability,

(5) Within 30 days of date of the notice of availability, any DoD Component or federal agency is required to

provide a written, firm expression of interest for buildings and property. An expression of interest must

explain the intended use and the corresponding requirement for the buildings and property.

(6) Within 60 days of the date of the notice of availability, the DoD Component or federal agency expressing

interest in buildings or propefly must submit an application for transfer of such property to the Military

Department or federal agency.

(i) Within 90 days of the notice of availability, the FAA should survey the air traffic control and air

navigation equipment at the installation to determine what is needed to support the air traffic control,

surveillance, and communications functions supported by the Military Department, and to identify

the facilities needed to support the National Airspace System. FAA requests for property to manage

the National Airspace System will not be governed by paragraph (a)(9) of this section. Instead, such

requests will be governed by the requirements of41 CFR 101-47.308-2, to determine the transfer of

property necessary for control of the airspace being relinquished by the Military Department.

(7) The Military Department will keep the LRA informed of the progress in identifying interests. At the same

time, the LRA is encouraged to contact federal agencies which sponsor public benefit transfers for

information and technical assistance. The Military Department will provide points of contact at the

federal agencies to the LRA.

(8) Federal agencies and DoD Components are encouraged to discuss their plans and needs with the LRA, if

an LRA exists. DoD Components and federal agencies are encouraged to notify the Military Department

of the results of this non-binding consultation. The Military Departments, the Base Transition

Coordinator, and the Ofilce of Economic Adjustment Project Manager are available to help facilitate

communication between the federal agencies, DoD Components, and the LRA.

(9) A request for property from a DoD Component or federal agency must contain the following information:

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

A completed GSA Form 1334, Request for Transfer (for requests from other DoD Components a

DD Form 1354 is required). This must be signed by the head of the Component of the Department

or Agency requesting the property. If the authority to acquire property has been delegated, a copy of

the delegation must accompany the form;

A statement from the head of the requesting Component or agency that the request does not establish

a new program (i.e., one that has never been reflected in a previous budget submission or

Congressional action);

A statement that the requesting Component or agency has reviewed its real property holdings and

cannot satis@ this requirement with existing property. This review must include all property under

the requester’s accountability, including permits to other federal agencies and outleases to other

organizations;

A statement that the requested property would provide greater long-term economic benefits than

acquisition of a new facility or other property for the program;

A statement that the program for which the property is requested has long-term viability;

A statement that considerations of design, layout, geographic location, age, state of repair, and

expected maintenance costs of the requested property clearly demonstrate that the transfer will prove

more economical over a sustained period of time than acquiring a new facility;

A statement that the size of the property requested is consistent with the actual requiremen~

(viii) A statement that fair market value reimbursement to the Military Department will be made within

two years of the initial request for the property, unless this obligation is waived by the OffIce of

Management and Budget and the Secretary of the Military Department or a public law specifically

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DoD Base Reuse Implementation Manual

(10)

(11)

(12)

provides for a non-reimbursable transfer. However, requests from the Military Departments or DoD

Components do not need an OffIce of Management and Budget waive~ and,

(ix) A statement that the requesting DoD Component or federal agency agrees to accept the care and

custody costs for the property on the date the property is available for transfer, as determined by the

Military Department.

The Military Department will make its decision on a request from a federal agency, Military Department,

or DoD Component based upon the following factors, from the Federal Property Management Regulations

(41 CFR 101-47.201-2):

(i)

(ii)

(iii)

(iv)

(v)

(vi)

The paramount consideration shall be the validity and appropriateness of the requirement upon

which the proposal is based;

The proposed federal use is consistent with the highest and best use of the property;

The requested transfer will not have an adverse impact on the transfer of any remaining portion of

the base;

The proposed transfer wilI not establish a new program or substantially increase the level of an

agency’s existing programs;

The application offers fair market value for the property, unless waived:

The proposed transfer addresses applicable environmental responsibilities to the satisfaction of the

Military Department and,

(vii) The proposed transfer is in the best interest of the Government.

When there are more than one acceptable applications for the same building or property, the Military

Department responsible for the installation should first consider the needs of the military to carry out its

mission. The Military Department should then consider the proposal’s economic development and job

creation potential and the LRA’s comments, as well as the other factors in the determination of highest

and best use.

Closing or realigning installations may contain “public domain lands” which have been withdrawn by the

Secretary of the Interior from operation of the public land laws and reserved for the Defense Department’s

use. Lands deemed suitable for return to the public domain are not real property governed by the Federal

Property and Administrative Services Act of 1949, as amended, (40 U.S.C. 472), and are not governed by

the property management and disposal provisions of the Base Closure and Realignment Act of 1988 (Pub.

L. 100-526) and Defense Base Closure and Realignment Act of 1990 (Pub. L. 101-510). Public domain

lands are under the jurisdiction of the Secretary of the Interior and administered by the Bureau of Land

Management (BLM) unless the Secretary of the Interior has withdrawn the lands and reserved them for

another federal agency’s use.

(i)

(ii)

(iii)

The Military Department responsible for a closing or realigning installation will provide the BLM

with the notice of potential availability, as well as information about which, if any, public domain

lands will be affected by the installation’s closing.

The BLM will review the notice of potential availability to determine if any installations contain

withdrawn public domain lands. Before the date of approval of the closure or realignment, the BLM

will review its land records to identify any withdrawn public domain lands at the closing

installations. Any records discrepancies between the BLM and Military Departments should be

resolved within this time period. The BLM wiIl notify the Military Departments as to the final

agreed upon withdrawn and reserved public domain lands at installations.

Upon agreement as to what withdrawn and reserved public domain lands are affected at closing

installations, the BLM will initiate a screening of DOI agencies to determine if these lands are

suitable for programs of the Secretary of the Interior.

December 7997 C-9
32 CFR Part 175: Revitalizing Base Closure Communities— Base Closure Community Assistance

(13)

(14)

(15)

(iv) Military Depafiments will ~ansmit a Notice of Intent to Relinquish (See 43 CFR 2372) to the BLM

as soon as it is known that there is no DoD Component interest in reusing the public domain lands.

The BLM will complete the suitability determination screening process within 30 days of receipt of

the Milit~ Department’s Notice of Intent to Relinquish. If a DoD Component is approved to reuse

the public domain lands, the BLM will be notified and BLM will determine if the current authority

for military use of these lands needs to be modified/amended.

(v) If BLM determines the land is suitable for return, they shall notify the Military Department that the

intent of the Secretary of the Interior is to accept the relinquishment of the Military Department.

(vi) If BLM determines the land is not suitable, the lands should be disposed of pursuant to base closure

law.

The Military Department should make its surplus determination within 100 days of the issuance of the

notice of availability, and shall inform the LRA of the determination. If requested by the LRA, the

Military Department may postpone the surplus determination for a period of no more than six months

after the date of approval of the closure or realignment.

(i) In unusual circumstances, extensions beyond six months can be granted by the Depury Under

Secretary of Defense (Industrial Afairs and Installations).

(ii) Extensions of the surplus determination should be limited to the portions of the installation where

there is an outstanding interest, and every effort should be made to make decisions on as much of the

installation as possible, within the specified timeframes.

Once the surplus determination has been made, the Military Department shall:

(i) FO11OW the procedures outlined in paragraph (b) of this section, if applicable.

(ii) Or, for installations approved for closure or realignment after October 25, 1994, and installations

approved for closure or realignment prior to October 25, 1994, that have elected, prior to December

24, 1994, to come under the process outlined in the Base Closure Community Redevelopment and

Homeless Assistance Act of 1994, follow the procedures outlined in paragraph (c)of this section.

Following the surplus determination, but prior to the disposal of property, the Military Department may, at

its discretion, withdraw the surplus determination and evaluate a federal agency’s late request for excess

property.

(i)

(ii)

(iii)

Transfers under this paragraph shall be limited to special cases, as determined by the Secretary of the

Mditary Department.

Requests shall be made to the Military Department, as specified under paragraphs (a)(8) and (a)(9)

of this section, and the Military Department shall notify the LRA of such late request.

Comments received from the LRA and the time and effort invested by the LRA in the planning

process should be considered when the Military Department is reviewing a late request.

(b) Homeless screening for propemies not covered by the Base Closure Community Redevelopment and Homeless

Assistance Act of 1994. -

(1) This section outlines the procedure created for the identification of real property to fulfill the needs of the

homeless by Sec. 2905(b)(6) of Pub. L. 101-510, as amended by Pub. L. 103-160 (referred to as the Pryor

Amendment). It applies to BRAC 88,91, and 93 bases if the LRA did not elect to be subject to the

alternate homeless assistance screening procedure contained in the Base Closure Community

Redevelopment and Homeless Assistance Act of 1994.

(2) The Military Department shall sponsor a workshop or seminar in the communities which have closing or

realigning bases, unless such a workshop or seminar has already been held. These workshops or seminars

will be conducted prior to the Federal Register publication by HUD of available property to assist the

homeless.

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DoD Base Reuse Implementation Manual

(3)

(4)

(5)

(6)

(7)

(i)

(ii)

(iii)

Not later than the date upon which the determination of surplus is made, the Military Department

shall complete any determinations or surveys necessary to determine whether any building is

available to assist the homeless. The Military Department shall then submit the list of propeties

available to assist the homeless to HUD.

HUD shall make a determination of the suitability of each property to assist the homeless in

accordance with the Stewart B. McKinney Homeless Assistance Act, 42 U.S.C. 11411, (the

McKinney Act). Within 60 days from the date of receipt of the information from the Department of

Defense, HUD shall publish a list of suitable properties that shall become available when the base

closes or realigns.

The listing of properties in the Federal Register under this procedure shall contain the following

statement. (The listing of 1988 base closure properties that will be reported to HUD shall refer to

Sec. 204(b)(6) of Pub. L. 100-526 instead of Sec. 2905(b)(6) of Pub. L. 101-510):

The properties contained in this listing are closing and realigning military installations. This

report is being accomplished pursuant to Sec. 2905(b)(6) of Pub. L. 101-510, as amended by

Pub. L. 103-160. In accordance with Sec. 2905(b)(6), this property is subject to a one-time

publication under the McK]nney Act after which property not provided to homeless assistance

providers will not be published again unless there is no expression of interest submitted by the

local redevelopment authority in the one-year period following the end of the McKinney

screening process pursuant to this publication.

Providers of assistance to the homeless shall then have 60 days in which to submit expressions of interest

to HHS in any of the listed properties. If a provider indicates an interest in a listed property, it shall have

an additional 90 days after submission of its written expression of interest to submit a formal application

to HHS, a period which HHS can extend. HHS shall then have 25 days after receipt of a completed

application to review and complete all actions on such applications.

During this screening process (from 60 to 175 days following the Federal Register publication, as

appropriate), disposal agencies shall take no final disposal action or allow reuse of property that HUD has

determined suitable and that may become available for homeless assistance unless and until:

(i) No timely expressions of interest from providers are received by HHS;

(ii) No timely applications from providers expressing interest are received by HHS; or,

(iii) HHS rejects all applications received for a specific property.

The Military Department should promptly inform the affected LRA, the Governor of the State, local

governments, and agencies which support public benefit conveyances of the date the surplus property will

be available for community reuse ifi

(i)

(ii)

(iii)

No provider expresses an interest to HHS in a property with the allotted 60 days;

There are expressions of interest by homeless assistance providers, but no application is received by

HHS from such a provider within the subsequent 90-day application period (or within the longer

application period if HHS has granted an extension); or

HHS rejects all applications for a specific property at any time during the 25 day HHS review

period.

The LRA shall have 1 year from the date of notification under paragraph (b)(5) to submit a written

expression of interest to incorporate the remainder of the property into a redevelopment plan.

During the allotted l-year period for the LRA to submit a written expression of interest for the property,

surplus properties not already approved for homeless reuse shall not be available for homeless assistance.

The surplus properties will also not be advertised by HUD as suitable during these l-year periods. The

surplus property may be available for interim leases consistent with paragraph (g) of this section.

December 1997 C-1 1
32 CFR Part 175: Revitalizing Base Closure Communities—Base Closure Community Assistance

(8) If the LRA does not express in writing its interest in a specific property during the allotted l-year period

or it notifies the Military Department it is not interested in the property, the disposal agency shall again

notify HUD of the date of availability of the property for homeless assistance. HUD may then list the

property in the Federal Register as suitable and available after the base closes following the procedures of

the McKinney Act.

(c) Reserved Additional regulations will be promulgated in a publication of the Departments of Defense and

Housing and Urban Development to address state and local screening and approval of redevelopment plans for

installations covered by the Base Closure Community Redevelopment and Homeless Assistance Act of 1994

(Pub. L. 103-421).

(d) Local Redevelopment Authority and the Redevelopment Plan.

(1)

(2)

(3)

The LIL4 should have broad-based membership, including, but not limited to, representatives from those

jurisdictions with zoning authority over the property. Generally, there will be one recognized LRA per

installation.

The LRA should focus primarily on developing a comprehensive redevelopment plan based upon local

needs. The plan should recommend land uses based upon an exploration of feasible reuse alternatives. If

applicable, the plan should consider notices of interest received under the provisions of the Base Closure

Community Redevelopment and Homeless Assistance Act of 1994 (Pub. L. 103-421 ). This section shall

not be construed to require a plan that is enforceable under state and local land use laws, nor is it intended

to create any exemption from such laws.

The Military Department will develop a disposal plan and complete the appropriate environmental

documentation no later than 12 mon& from receipt of the redevelopmen~ pla~. The local redevelopment

plan will generally be used as the basis for the proposed action in conducting environmental analyses

required by under the National Environmental Policy Act of 1969 (NEPA), (42 U.S.C. 4332 et.seq.). The

disposal plan will specifically address the methods for disposal of property at the installation, including

conveyances for homeless assistance, public benefit transfers, public sales, Economic Development

Conveyances and other disposal methods.

(i) In the event there is no LRA recognized by DoD and/or if a redevelopment plan is not received from

the LRA within 15 months from the determination of surplus under paragraph (a)(l 3) of this section,

(unless an extension of time has been granted by the Deputy Under Secretary of Defense (Industrial

Afiairs and lnsrallarions)), the applicable Military Department shall proceed with the disposal of

property under applicable propetty disposal and environmental laws and regulations.

(e) Economic development conveyances.

(1)

(2)

(3)

(4)

Section 2903 of Pub. L. 103-160 gives the Secretary of Defense the authority to transfer property to local

redevelopment authorities for consideration in cash or in kind, with or without initial payment, or with

only partial payment at time of transfer, at or below the estimated present fair market value of the

property. This authority creates an additional tool for local communities to help spur economic

opportunity through a new real property conveyance method specifically designed for economic

developmen~ referred to as the “Economic Development Conveyance” (EDC).

The EDC can only be used when other surplus federal property disposal authorities for the intended land

use cannot be used to accomplish the necessary economic redevelopment.

An LRA is the only entity able to receive property under an EDC.

A properly completed application will be the basis for a decision on whether an LRA will be eligible for

an EDC. An application should be submitted by the LRA after a Redevelopment Plan is adopted by the

LRA. The Secretary of the Military Departments shall establish a reasonable time periti for submission

of the EDC application after consultation with the LRA. The Military Departments will review the

applications and make a decision whether to make an EDC based on the criteria specified in paragraph

(e)(7) of this section. The terms and conditions of the EDC will be negotiated between the Military

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DoD Base Reuse Implementation Manual

(5)

(6)

Departments and the LRA. Bases in rural areas shall be conveyed with no consideration if they meet the

standards in paragraph (f,)(5) of this section.

The application should explain why an EDC is necessary for economic redevelopment and job creation.

The application should also contain the following elements:

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

A copy of the adopted redevelopment plan.

A project narrative including the following:

(A) A general description of property requested.

(B) A description of the intended uses.

(C) A description of the economic impact of closure or realignment on the local communities.

(D) A description of the financial condition of the community and the prospects for redevelopment

of the property.

(E) A statement of how the EDC is consistent with the overall Redevelopment Plan.

A description of how the EDC will contribute to short- and long-term job creation and economic

redevelopment of the base and community, including projected number, and type of new jobs it will

assist in creating.

A business/operational plan for the EDC parcel, including such elements as:

(A)

(B)

(c)

(D)

A development timetable, phasing schedule and cash flow analysis.

A market and financial feasibility analysis describing the economic viability of the project,

including an estimate of net proceeds over a fifteen-year period, the proposed consideration or

payment to the Department of Defense, and the estimated present fair market value of the

property.

A cost estimate and justification for infrastructure and other investments needed for the

development of the EDC parcel.

Local investment and proposed financing strategies for the development.

A statement describing why other authorities — such as public or negotiated sale and public benefit

transfers for education, parks, public health, aviation, historic monuments, prisons, and wildlife

conservation — cannot be used to accomplish the economic development and job creation goals.

If a transfer is requested for less than the estimated present fair market value (“FMV”), with or

without initial payment at the time of transfer, then a statement should be provided justifying the

discount. The statement should include the amount and form of the proposed consideration, a

payment schedule, the general terms and conditions for the conveyance, and projected date of

conveyance.

A statement of the LRA’s legal authority to acquire and dispose of the property.

In addition to the elements previously mentioned, after Military Department review of the application,

additional information may be requested to allow for a better evaluation of the application.

Upon receipt of an application for an EDC, the Secretary of the Military Department will determine

whether an EDC is needed to spur economic development and job creation and examine whether the terms

and conditions proposed are fair and reasonable. The Military Department may also consider information

independent of the application, such as views of other federal agencies, appraisals, caretaker costs and

other relevant material. The Military Department may propose and negotiate any alternative terms or

conditions that it considers necessary.

December 1997 C-13
32 CFR Part 175: Revitalizing Base Closure Communities— Base Closure Community Assistance

(8

(7) The following factors will be considered, as appropriate, in evaluating the application and the terms and

conditions of the proposed transfer, including price, time of payment and other relevant methods of

compensation to the federal government.

(i) Adverse economic impact of closure or realignment on the region and potential for economic

recovery after an EDC.

(ii) Extent of short- and long-term job generation.

(iii) Consistency with overall Redevelopment plan.

(iv) Financial feasibility of the development, including market analysis and need and extent of proposed

infrastructure and other investments.

(v) Extent of state and local investment, level of risk incurred, and the LRA’s ability to implement the

plan.

(vi) Current local and regional real estate market conditions.

(vii) Incorporation of other federal agency interests and concerns, and applicability of, and conflicts with,

other federal surplus property disposal authorities.

(viii) Relationship to the overall Militq Department disposal plan for the installation.

(ix) Economic benefit to the federal government, including protection and maintenance cost savings and

anticipated consideration from the transfer.

(x) Compliance with applicable federal, state, and local laws and regulations.

(8) Before making an EDC, the Military Department must prepare an estimate of the present fair market value

of the property, which may be expressed as a range of values. The Military Department shall consult with

the LRA on valuation assumptions, guidelines and on instructions given to the person(s) making the

estimation of value. The Military Department is fully responsible for completion of the valuation. The

Military Department, in preparing the estimate of present fair market value shall include, to the extent

practicable, the uses identified in the local redevelopment plan.

Consideration for economic development conveyances,

(1) For conveyances made pursuant to section 175.7 (e), Economic development conveyances, the Secretary

of the Military Department will review the application for an EDC and negotiate the terms and conditions

of each transaction with the LRA. The Military Departments will have the discretion and flexibility to

enter into agreements that specify the form, amount, and payment schedule. The consideration may be at

or below the estimated present fair market value, with or without initial payment, in cash or in-kind and

paid over time.

(2) An EDC must be one of the two following types of agreements:

(i) Consideration within the estimated range of present fair market value, as determined by the

Secretary of the Military Department.

(ii) Consideration below the estimated range of present fair market value, when proper justification is

provided and when the Secretary of the Military Department determines that a discount is necessary

for economic redevelopment and job creation.

(3) If the consideration under an EDC is within the range of value listed in paragraph (f.)(2)(i) of this section,

the amount paid in the future should take into account the time value of money and include repayment of

interest. Any transaction that waives or delays interest payments will be considered as a transaction below

the present fair market value under para=gaph (f)(2)(ii) of this section, and as such must be justified as

necessasy for economic development and job creation.

C-1 4 December 1997
DoD Base Reuse Implementation Manual

(4) Additional provisions may be incorporated in the conveyance documents to protect the Department’s

interest in obtaining the agreed upon compensation, including such items as pre-determined release prices,

or other appropriate clauses designed to ensure payment and protect against fraudulent transactions.

(5) In a rural area, as defined by this rule, any EDC approved by the Secretary of the Military Department

shall be made without consideration if the base closure will have a substantial adverse impact on the

economy of the communities in the vicinity of the installation and on the prospect for their economic

recovery.

(6) In those instances in which an EDC is made for consideration below the range of the estimated present

fair market value of the property — or if the estimated present fair market value is expressed as a range of

values, below the lowest value in that range — the Military Department shall prepare a written

explanation of why the estimated present fair market value was not obtained. Additionally, the Military

Departments must prepare a written statement explaining why other federal property transfer authorities

could not be used to generate economic redevelopment and job creation.

(g) Leasing of real properry.

(1) Leasing of real property prior to the final disposition of closing and realigning bases may facilitate state

and local economic adjustment efforts and encourage economic redevelopment.

(2) In addition to leasing property at fair market value, to assist local redevelopment efforts the Secretaries of

the Military Departments may also lease real and personal property located at a military installation to be

closed or realigned under a base closure law, pending final disposition, for less than fair market value if

the Secretary concerned determines that:

(i) A public interest will be served as a result of the lease; and

(ii) The fair market value of the lease is unobtainable, or not compatible with such public benefit.

(3) Pending final disposition of an installation, the Military Departments may grant interim leases which are

short-term leases that make no commitment for future use or ultimate disposal. When granting an interim

lease, the Military Department will generally lease to the LRA but can lease property directly to other

entities. If the interim lease is entered into prior to completion of the final disposal decisions under the

National Environmental Policy Act (NEPA) process, the term may be for up to five years, including

options to renew, and may contain restrictions on use. Leasing should not delay the final disposal of the

property. After completion of the final disposal decisions, the term of the lease maybe longer than five

years.

(4) If the property is leased for less than fair market value to the LR4 and the interim lease permits the

property to be subleased, the interim lease shall provide that rents from the subleases will be applied by

the lessee to the protection, maintenance, repair, improvement and costs related to the property at the

installation consistent with 10 U.S.C. 2667.

(h) Personal property.

(1) This section outlines procedures to allow transfer of personal property to the LRA for the effective

implementation of a community reuse plan.

(2) Each Military Department and DoD Component, as appropriate, will take an inventory of the personal

property, including its condition, within 6 months after the date of approval of closure or reali=~ment.

This inventory will be Iimited to the personaI property located on the real property to be disposed of by

the Military Department or DoD Component. The inventory will be tien in consultation with LRA

officials. If there is no LRA, the Military Department will offer to provide a consultation for the local

government in whose jurisdiction the installation is wholly located or for a local government agency or a

state government agency designated for that purpose by the chief executive ofilcer of the state. Based on

these consultations, the base commander will determine the items or category of items that have the

potential to enhance the reuse of the real property.

December 1997 C-1 5
32 CFR Part 175: Revitalizing Base Closure Communities—Base Closure Community Assistance

(3)

(4)

(5)

Except for property subject to the exemptions in paragraph (h)(5) of this section, personal property with

potential to enhance the reuse of the real estate shall remain at a base being closed or realigned until

disposition is otherwise determined by the Military Department. This determination will be made no

earlier than 90 days after the Military Department receives an adopted redevelopment plan or when

notified by the LRA that there will be no redevelopment plan.

National Guard property demonstrably identified as being purchased with state funds is not available for

reuse planning or subject to transfer for redevelopment purposes, unless so identified by the state property

officer. National Guard property purchased with federal funds is subject to inventory and may be made

available for redevelopment planning purposes.

Personal property may be removed upon approval of the base commander or higher authority, within and

as prescribed by the Military Department, after the inventory required in paragraph (h)(2) of this section

has been sent to the redevelopment authority, when:

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

The property, other than ordinary fixtures, is required for the operation of a transferring unit,

function, component, weapon, or weapons system;

The property is required for the operation of a unit, function, component, weapon, or weapon system

at another installation within the Military Department, subject to the following conditions:

(A)

(B)

Ordinary fixtures, including but not limited to such items as blackboards, sprinklers, lighting

fixtures, and electrical and plumbing systems, shall not be removed under paragraph (h)(5)(ii)

of this section; and,

Other personal property may be removed under paragraph (h)(5)(ii) of this section only after

the Military Department has consulted with the LRA and, with respect to disputed items, upon

the approval of an Assistant Secretary of the Military Department.

The property is uniquely military in character and is likely to have no civilian use (other than use for

its material content or as a source of commonly used components). This property consists of

classified items; nuclear, biological, chemical items; weapons and munitions; museum property or

items of significant historic value that are maintained or displayed on loan; and similar military

items;

The property is not required for the reutilization or redevelopment of the installation (as jointly

determined by the Military Department concerned and the redevelopment authority);

The property is stored at the installation for distribution (including spare parts or stock items). This

property includes materials or parts used in a manufacturing or repair function but does not include

maintenance spares for equipment to be left in place;

The property meets known requirements of an authorized program of another federal department or

agency that would have to purchase similar items, and the property is the subject of a written request

received from the head of the other Department or Agency. If the authority to acquire personal

property has been delegated, a copy of the delegation must accompany the request. In this context,

“purchase” means the federal department or agency intends to obligate funds in the current quarter

or next six fiscal quarters. The federal department or agency must pay packing, crating, handling,

and transportation charges associated with such transfers of personal property;

The property belongs to nonappropriated fund instrumentalities (NAFI) and other non-Defense

Department activities. Such property may be removed at the Military Departments’ discretion

because it does not belong to the Defense Department and, therefore, it may not be transferred to the

redevelopment authority under this section. For NAFI property, separate arrangements for

communities to purchase such property are possible and may be negotiated with the Military

Department concerned; and,

(viii) The property is needed elsewhere in the national security interest of the United States as determined

by the Secretary of the Military Department concerned. This authority may not be redelegate

C-1 6 December 1997
DoD Base Reuse Implementation Manual

(6)

(7)

(8)

(9)

(lo)

below the level of an Assistant Secretary. In exercising this authority, the Secretary may transfer the

property to any entity of the Department of Defense or other federal agency.

In addition to the exemptions in paragraph (h)(5) of this section, the Military Department or DoD

Component is authorized to substitute an item similar to one requested by the redevelopment authority,

Personal property not subject to the exemptions in paragraph (h)(5) of this section may be conveyed to the

redevelopment authority as part of an economic development conveyance for the real property if the

Military Department makes a finding that the personal property is necessary for the effective

implementation of the redevelopment plan.

Personal property may also be conveyed separately to the LRA under an economic development

conveyance for personal property. This type of economic development conveyance can be made if the

Military Department determines that the transfer is necessary for the effective implementation of a

redevelopment plan with respect to the installation. Such determination shall be based on the LIL4’s

timely application for the property, which should be submitted to the Military Department upon

completion of the redevelopment plan. The application must include the LRA’s agreement to accept the

personal property after a reasonable period. The transfer will be subject to reasonable limitations and

conditions on use.

(i) The Military Department will restrict the LRA’s ability to acquire personal property at less than fair

market value solely for the purpose of releasing or reselling it, unless the LRA will lease or sell the

personal property to entities which will place it into productive use in accordance with the

redevelopment plan. The LRA must retain personal property conveyed under an EDC for less than

fair market value for at least one year if it is valued at less than $5,000, or at least two years if valued

at more than S5,000. Any proceeds from such leases or sales must be used to pay for protection,

maintenance, repair or redevelopment of the installation. The LRA will be required to certify its

compliance with the provisions of this section at the end of each fiscal year for no more than two

years after transfer. The certification may be subject to random audits by the Government.

Personal property that is not needed by the Military Department or a federal agency or conveyed to a

redevelopment authority (or a state or local jurisdiction in lieu of a local redevelopment authority) will be

transferred to the Defense Reutilization and Marketing Office for processing in accordance with 41 CFR

101-43 through 10145, “Federal Property Management Regulations,” and DoD 4160.21 -M.d

Useful personal property determined to be surplus to the needs of the federal government by the Defense

Reutilization and Marketing OffIce and not qualifying for transfer to the redevelopment authority under an

economic conveyance may be donated to the community or redevelopment authority through the

appropriate State Agency for Surplus Property (SASP). Personal property donated under this procedure

must meet the usage and control requirements of the applicable SASP. Property subsequently not needed

by the community or redevelopment authority shall be disposed of as required by its SASP.

(i) Maintenance, utilities, and services.

(1)

(2)

Facilities and equipment located on bases being closed are often important to the eventual reuse of the

base. This section provides maintenance procedures to preserve and protect those facilities and items of

equipment needed for reuse in an economical manner that facilitates base redevelopment.

In order to ensure quick reuse, the Military Department, in consultation with the LRA, will establish initial

levels of maintenance and repair needed to aid redevelopment and to protect the property for the time

periods set forth below. Where agreement between the Military Department and the LRA cannot be

reached, the Secretaq of the Military Department will determine the required levels of maintenance and

repair and its duration. In no case will these initial levels of maintenance:

4 Copies maybe obtained from the Defense Logistics Agency, Attn: DLA-XPD, Alexandria, VA 22304-6100

December 1997 C-1 7
32 CFR Part 175: Revitalizing Base Closure Communities—Base Closure Community Assistance

(3)

(4)

(5)

(6)

(7)

(i)

(ii)

(iii)

Exceed the standard of maintenance and repair in effect on the date of closure or realignment

approval;

Be less than maintenance and repair required to be consistent with federal government standards for

excess and surplus properties (i.e., 41 CFR 101-47.402 and 41 CFR 101-47.4913); or,

Require any property improvements, including construction, alteration, or demolition, except when

the-demolition is required for health, safety, o; environmental purposes, or is economically ~ustified

in lieu of continued maintenance expenditures.

The initial levels of maintenance and repair shall be tailored to the redevelopment plan, and shall include

the following provisions:

(i) The facilities and equipment that zwe likely to be utilized in the near term will be maintained at levels

that shall prevent undue deterioration and allow transfer to the LRA.

(ii) The scheduled closure or realignment date of the installation will not be delayed.

The Military Department wiil not reduce the agreed upon initial maintenance and repair levels unless it

establishes a new arrangement (e.g., termination of caretaking upon leasing of property) in consultation

with the LRA.

The Military Department will determine the length of time it will maintain the initial levels of

maintenance and repair for each closing or realigning base. This determination will be based on factors

such as the closure/realignment date and the timing of the completion of the National Environmental

Policy Act (NEPA) documentation on the proposed disposal (such as a finding of no significant impact

and disposal decision following an environmental assessment or the record of decision following an

environmental impact statement).

(i)

(ii)

(iii)

For a base that has not closed prior to the publication of this rule, and where the Military Department

has completed the NEPA analysis on the proposed disposal before the operational closure of that

base, the time period for the initial levels of maintenance and repair normally will extend no longer

than one year after operational closure of the base.

For a base that has not closed prior to the publication of this rule, and where the base’s operational

closure precedes the completion of the NEPA analysis on the proposed disposal, the time period for

the initial levels of maintenance and repair will normally extend no longer than one yeas after

operational closure or 180 days after the Secretary of the Militasy Department approves the NEPA

analysis.

For a base that closed prior to the publication of this rule, the time period for the existing levels of

maintenance will normally extend no longer than one year from the date of the publication of this

rule.

The Military Department may extend the time period for the initial levels of maintenance and repair for

property still under its control for an additional period, if the Secretary of the Military Department

determines that the Local Redevelopment Authority is actively implementing its redevelopment plan, and

such levels of maintenance are justified.

Once the time period for the initial or extended levels of maintenance and repair elapses, the Military

Department will reduce the levels of maintenance and repair to levels consistent with federal government

standa-ds for excess and surplus properties (i.e., 41 CFR 101-47.402 and41 Cl?R 101-47.4913).

0) Note: This space has been reserved for regulations implementing Section 2908 of the National Defense

Authorization Act for FY 1994 regarding the transfer of real property or facilities to persons paying the cost Of

environmental restoration activities on the property. A Proposed Rule was published on April 6, 1994 (59 FR

16157) but a Final Rule has not been promulgated.

(k) Lea.reback of property at base closure and realignment sites.

C-1 8 December 1997
DoD Base Reuse Implementation Manual

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

Section 2905(b)(4)(c) of Pub. L. IO1-51O, 10 U.S. C. 2687 note (BRAC 1990), as added by seclion 28.37 of

Pub. L. 104-106, gives the Secretary of Defense the authority to transfer property that is still needed by a

Federal Department or Agency to an LRA provided the LRA agrees to lease the property back to the

Federal Department or Agency in accordance with all statutory and regulatory guidance. The purpose

of this authority, hereinajier referred to as a “leaseback, “ is to enable the LRA to obtain ownership of

the property pursuant to the BRA C process while still ensuring that the Federal need for use of the

property is accommodated.

Subject to BRAC 1990 and this part, the decision whether to transfer property pursuant to a leaseback

rests with the relevant milita~ department. However, a military department may only transfer property

via a leaseback if the Federal entity that needs the property agrees to the leaseback arrangement.

If for any reason property cannot be transferred pursuant to a leaseback (e.g., the relevant Federal

Agency prefers ownership, the LRA and the Federal entity cannot agree on terms of the lease, or the

military department determines that a leaseback would not be in the Federal interest), such property

shall remain in Federal ownership unless and until the relevant landholding entity determines that it is

surplus pursuant to the Federal Property Management Regulations.

If a building or structure is proposed for transfer under this authority, that which is leased back to the

Federai Department or Agency maybe all or a portion of that building or structure.

The leaseback authority maybe used at all installations approved for closure or realignment under

BRAC 1990.

Transfers under this authority must be to an LRA.

Transfers under this authority may be by lease in furtherance of conveyance or deed. A lease in

furtherance of conveyance is appropriate only in those circumstances where deed transfer cannot be

accomplished because the requirements of the Comprehensive Environmental Response, Compensation,

and Liability Act (CERCLA) (42 U.S. C. 9601, et seq. ) for such transfer have not been met. The lease in

furtherance of conveyance or accompanying contract shall include a provision stating that the LRA

agrees to take title to the property when requirements for the transfer have been satisfied.

The leaseback authority can be used to transfer property that is needed either by existing Federal tenants

or by Federal Departments or Agencies desiring to locate onto the property after operational closure.

The Military Department that is closing or realigning the installation may not transfer property to an

LIZA under this authority and lease it back unless:

(i) The Military Department is acting in an Executive Agent capacity on behdfof a Defense Agency

that certifies that a leaseback is in the interest of that Defense Agency; or,

(ii) The Secretary of the Military Department cert@es that a leaseback is in the best interest of the

Military Department and that use of the property by the Military Department is consistent with the

obligation to close or realign the installation in accordance with the recommendations of the

Defense Base Closure and Realignment Commission.

Property eligible for a leaseback is not surplus because it is still needed by a Federal entity. However,

notwithstanding that the property is not surplus and that the LRA would not otherwise have to include

such property in its redevelopment plan, the LRA should include the proposed leaseback of property in its

redevelopment pl~ taking into account the planned Federal use of such property.

The terms of the LRA’s lease to the Federal entity should afford the Federal Department or Agency rights

as close to those associated with ownership of the proper~ as is practicable. The requirements of the

General Services Acquisition Regulation (GSAR) (48 CFR Part 570) are not applicable to the lease, but

provisions in the GSAR maybe used to the extent they are consistent with this Part. The terms of the

lease are negotiable subject to the following:

December 1997 C-19
32 CFR Part 175: Revitalizing Base Closure Communities— Base Closure Community Assistance

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

The lease shall be for a term of no more than 50 years, but may provide for options for renewal or

extension of the term at the request of the Federal Department or Agency concerned. The lease

term should be based on the needs of the Federal entity.

The lease, or any renewals or extensions thereo$ shall not require rental payments.

The lease shall not require the Federal Government to pay the LRA or other Local government entity

for municipal services including fire and police protection.

The Federal Department or Agency concerned maybe responsible for services such as janitorial,

grounds keeping, utilities, capital maintenance, and other services normally provided by a landlord.

Acquisition of such services by the Federal Department or Agency is to be accomplished through

the use of Federal Acquisition Regulation procedures or otherwise in accordance with applicable

statutory and regulatory requirements.

The lease shall include a provision prohibiting the LRA from transferring ownership rights to

another entity during the term of the lease, other than one of the political jurisdictions that comprise

the LRA, without the written consent of the Federal Department or Agency occupying the leaseback

property.

The lease shall include a provision specifying that tfthe Federal Department or Agency concerned

no longer needs the property before the expiration of the term of the lease, the remainder of the

lease term may be satisfied by the same or another Federal Department or Agency using the leased

property for a use similar to the use under the lease.

(A) The General Services Administration shall assist with identifying other Federal interest in

leasing the property.

(B) Prior to exercising such provision, the Federal Department or Agency shall consult with the

LRA concerned, or the elected body with jurisdiction over the property if the LRA no longer

exists.

The terms of the lease shall provide that the Federal Department or Agency may repair, improve,

and maintain the property at its expense without the approval of the LRA.

(11) Conveyance to an LRA under this authority shall be in one of the following ways:

(i) Lease back property that is to be conveyed under an Economic Development Conveyance (EDC)

shall be conveyed as part of the EDC in accordance with the existing EDC procedures and J

175. 7(k)(ll)(ii)(B)(4J The LRA shall submit the following in addition to the application

requirements outlined in $ 175.7(e)(5):

(A)

(B)

(c)

A description of the parcel or parcels the LRA proposes to have transferred to it and then to

lease back to a Federal Department or Agency;

A written statement signed by an authorized representative of the Federal entity that it agrees

to accept a leaseback of the property; and,

A statement explaining why a leaseback is necessary for the long-term economic

redevelopment of the installation property.

(ii) Leaseback property not associated with property to be conveyed under an EDC shall be conveyed in

accordance with the following procedures:

(A) As soon as possible ajler the LRA’s submission of its redevelopment plan to the DoD and

HUD, the LRA shall submit a request for a leaseback to the Military Department. The

Military Department may impose additional requirements as necessary, but at a minimum, the

request shall contain the following:

(1) A description of the parcel or parcels the LRA proposes to have transferred to it and

then to lease back to a Federal Department or Agency;

&20 December 1997
DoD Base Reuse Implementation Manual

(2) A written statement signed by an authorized representative of the Federal entity that

it agrees to accept a leaseback of the property; and,

(3) A statement explaining why a [easeback is necessary for the long-term economic

redevelopment of the installation property.

(B) The transfer may be for consideration at or below the estimated present fair market value. In

those instances in which the property is conveyed for consideration below the estimated

present fair market value, the Military Department shall prepare a written explanation of why

the estimated present fair market value was not obtained.

(1) In a rural area, the tran~er shall comply with j175.7(fi(5).

(2) Payment may be in cash or in-kind.

(3) The Military Department shall determine the estimated present fair market value of

the property before transfer under this authority.

(4) The exact amount of consideration, or the formula to be used to determine that

consideration, as well as the schedule for payment of consideration must be agreed

upon in writing before transfer under this authority.

December 1997 C-21
32 CFR Part 175: Revitalizing Base Closure Communities— Base Closure Community Assistance

This page intentionally lefi blank

C-22 December 1997
32 CFR Part176:

Revitalizing Base Closure Communities

and Community Assistance---Community

RedeveIoBment and Homeless

Assistance

PART 176- REVITALIZING BASE CLOSURE COMMUNITIES AND COMMUNITY ASSISTANCE --

COMMUNITY REDEVELOPMENT AND HOMELESS ASSISTANCE

Sec.

176.1 Purpose.

176.5 Definitions.

176.10

176.15

176.20

176.25

176.30

176.35

176.40

176.45

Applicability.

Waivers and extensions of deadlines.

Overview of the process.

HUD’s negotiations and consultations with the LRA.

LRA application.

HUD’s review of the application.

Adverse determinations.

Disposal of buildings and property.

Authority: 10 U.S.C. 2687 note.

Section 176.1 Purpose.

This part implements the Base Closure Community I&development and Homeless Assistance ACL as

amended (10 U.S.C. 2687 note), which instituted a new community-based process for addressing the needs of the

homeless at base closure and realignment sites. In this process, Local Redevelopment Authorities (LRAs) identify

interest from homeless providers in installation property and develop a redevelopment plan for the installation that

balances the economic redevelopment and other development needs of the communities in the vicinity of the

installation with the needs of the homeless in those communities. The Department of Housing and Urban

Development (HUD) reviews the LRA’s plan to see that an appropriate balance is achieved. This part also

implements the process for identifying interest from State and local entities for property under a public benefit

December 1997 C-23
32 CFR Part 176: Revitalizing Base Closure Communities and Community Assistanc&Community

Redevelopment and Homeless Assistance

transfer. The LRA is responsible for concurrently identifying interest from homeless providers and State and local

entities interested in property under a public benefit transfer.

Section 176.5 Definitions.

(a) CERCLA. Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. 9601 et seq).

(b) Communities in the vicinity of the insrallarion. The communities that constitute the political jurisdictions (other

than the State in which the installation is located) that comprise the LRA for the installation. If no LRA is

formed at the local level, and the State is serving in that capacity, the communities in the vicinity of the

installation are deemed to be those political jurisdiction(s) (other than the State) in which the installation is

located.

(c) Continuum of care system.

(1) A comprehensive homeless assistance system that includes:

(i)

(ii)

(iii)

(iv)

(v)

A system of outreach and assessment for determining the needs and condition of an individual or

family who is homeless, or whether assistance is necessary to prevent an individual or family from

becoming homeless;

Emergency shelters with appropriate supportive services to help ensure that homeless individuals

and families receive adequate emergency shelter and referral to necessary service providers or

housing finders;

Transitional housing with appropriate supportive services to help those homeless individuals and

families who are not prepared to make the transition to independent living;

Housing with or without supportive services that has no established limitation on the amount of time

of residence to help meet long-term needs of homeless individuals and families; and,

Any other activity that clearly meets an identified need of the homeless and fills a gap in the

continuum of care.

(2) Supportive services are services that enable homeless persons and families to move through the continuum

of care toward independent living. These services include, but are not limited to, case management,

housing counseling, job training and placement, primary health care, mental health services, substance

abuse treatment, child care, transportation, emergency food and clothing, family violence services,

education services, moving services, assistance in obtaining entitlements, and referral to veterans services

and legal services.

(d) Conso/idared Plan. The plan prepared in accordance with the requirements of 24 CFR part 91.

(e) Day. One calendar day including weekends and holidays.

(f) DoD. Department of Defense.

(g) HHS. Department of Health and Human Services.

(h) Homeless person.

(1) An individual or family who lacks a fixed, regular, and adequate nighttime residence; and,

(2) An individual or family who has a primary nighttime residence that is:

(i) A supervised publicly or privately operated shelter designed to provide temporzuy living

accommodations (including welfare hotels, congregate shelters and transitional housing for the

mentally ill);

(ii) An institution that provides a temporary residence for individuals intended to be institutionalized; or,

C-24 December 1997
DoD Base Reuse Implementation Manual

(i)

0)

(k)

(1)

(m)

(n)

(o)

(P)

(q)

(r)

(s)

(t)

(u)

(v)

(iii) A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation

for human beings.

(3) This term does not include any individual imprisoned or otherwise detained under an Act of the Congress

or a State law.

HUD. Department of Housing and Urban Development.

Installation. A base, camp, posL station, yard, center, homeport facility for any ship or other activity under the

jurisdiction of DoD, including any leased facility, that is approved for closure or realignment under the Base

Closure and Realignment Act of 1988 (Pub. L. 100-526), as amended, or the Defense Base Closure and

Realignment Act of 1990 (Pub. L. 101-510), as amended (both at 10 U.S.C. $2687, note).

Local redevelopment authority (LRA). Any authority or instrumentality established by State or local

government and recognized by the Secretary of Defense, through the OffIce of Economic Adjustment, as the

entity responsible for developing the redevelopment plan with respect to the installation or for directing

implementation of the plan.

NEPA. National Environmental Policy Act of 1969 (42 U.S.C. 4320).

OEA. Office of Economic Adjustment, Department of Defense.

Private nonprofit organization. An organization, no part of the net earnings of which inures to the benefit of

any member, founder, contributor, or individual; that has a voluntary board; that has an accounting system or

has designated an entity that will maintain a functioning accounting system for the organization in accordance

with generally accepted accounting procedures; and that practices nondiscrimination in the provision of

assistance.

Public benefit rransfer. The transfer of surplus military property for a specified public purpose at up to a 100

percent discount in accordance with40U.S.C.471 et. seq. or 49 U.S.C. 47151-47153.

Redevelopment plan. A plan that is agreed to by the LRA with respect to the installation and provides for the

reuse or redevelopment of the real property and personal property of the installation that is available for such

reuse and redevelopment as a result of the closure of the installation.

Representative(s) of the homeless. A State or local government agency or private nonprofit organization,

including a homeless assistance planning board, that provides or proposes to provide services to the homeless.

Substantially equivalent. Property that is functionally suitable to substitute for property referred to in an

approved Title V application. For example, if the representative of the homeless had an approved Title V

application for a building that would accommodate 100 homeless persons in an emergency shelter, the

replacement facility would also have to accommodate 100 at a comparable cost for renovation.

Substantially equivalent jimding. Sufficient funding to acquire a substantially equivalent facility.

Surplus properly. Any excess property not required for the needs and the discharge of the responsibilities of all

Federal Agencies. Authority to make this determination, after screening with all Federal Agencies, rests with

the Military Departments.

Title V. Title V of the Stewart B. McK.inney Homeless Assistance Act of 1987 (42 U.S.C 11411 ) as amended

by the National Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103-160).

Urban county. A county within a metropolitan area as defined at 24 CFR part 570.3.

Section 176.10 Applicability.

(a) General. This part applies to all installations that are approved for closure/realignment by the President and

Congress under Pub. L. 101-510 after October 25, 1994.

December 1997 C-25
32 CFR Part 176: Revitalizing Base Closure Communities and Community Assistance-Community

Redevelopment and Homeless Assistance

(b)

(c)

Reauest for inclusion under this orocess. This part also applies to installations that were approved for

closure/realignment under either Pub. L. 100-526 or Pub. L. 101-510 prior to October 25, 1994 and for which

an LRA submitted a request for inclusion under this part to DoD by December 24, 1994. A list of such requests

was published in the Federal Resister on May 30, 1995 (60 FR 28089).

(1) For installations with Title V applications pending but not approved before October 25, 1994, the LRA

shall consider and specifically address any application for use of buildings and property to assist the

homeless that were received by HHS prior to October 25, 1994, and were pending with the Secretary of

HHS on that date. These pending requests shall be addressed in the LRA’s homeless assistance

submission.

(2) For installations with Title V applications approved before October 25, 1994, where there is an approved

Title V application, but property has not been assigned or otherwise disposed of by the Military

Department, the LRA must ensure that its homeless assistance submission provides the Tide V applicant

with:

(i) The property requested;

(ii) Properties, on or off the installation, that are substantially equivalent to those requested;

(iii) Sufficient funding to acquire such substantially equivalent properties;

(iv) Services and activities that meet the needs identified in the application; or,

(v) A combination of the properties, funding, and services and activities described in 5176.10(b)(2)(i)-

(iv) of this part.

Revised Title V urocess. All other installations approved for closure or realignment under either Pub. L. 100-

526 or Pub. L. 101-510 prior to October 25, 1994, for which there was no request for consideration under this

part, are covered by the process stipulated under Title V. Buildings or property that were transferred or leased

for homeless use under Title V prior to October 25, 1994, may not be reconsidered under this part.

Section 176.15 Waivers and extensions of deadlines.

(a) After consultation with the LRA and HUD, and upon a finding that it is in the interest of the communities

affected by the closure/realignment of the installation, DoD, through the Director of the Office of Economic

Adjustment, may extend or postpone any deadline contained in this part.

(b) Upon completion of a determination and finding of good cause, and except for deadlines and actions required

on the part of DoD, HUD may waive any provision of $$176.20 through 176.45 of this part in any particular

case, subject only to statutory limitations.

Section 176.20 Overview of the process.

(a) Recognition of the LRA. As soon as practicable after the list of installations recommended for closure or

realignment is approved, DoD, through OEA, will recognize an LRA for the installation. Upon recognition,

OEA shall publish the name, address, and point of contact for the LRA in the Federal Resister and in a

newspaper of general circulation in the communities in the vicinity of the installation.

(b) Responsibilities of the Military Derxu-tment. The Military Department shall make installation properties

available to other DoD components and Federal agencies in accordance with the procedures set out at 32 CFR

part 175. The Military Department will keep the LRA informed of other Federal interest in the property during

this process. Upon completion of this process the Military Department will notify HUD and either the LRA, or

the Chief Executive Officer of the State, as appropriate, and publish a list of surpIus property on the installation

that will be available for reuse in the Federal Resister and a newspaper of general circulation in the

communities in the vicinity of the installation.

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DoD Base Reuse Implementation Manual

(c) Res~onsibilities of the LRA. The LRA should begin to conduct outreach efforts with respect to the installation

as soon as is practicable after the date of approval of closure/realignment of the installation. The local reuse

planning process must begin no later than the date of the Military Department’s Federal Register publication of

available property described at $176.20(b). For those installations that began the process described in this part

prior to August 17, 1995, HUD will, on a case by case basis, determine whether the statutory requirements have

been fulfilled and whether any additional requirements listed in this pm should be required. Upon the&d@

Resister publication described in $176.20(b), the LRA shall:

(1) Publish, within 30 days, in a newspaper of general circulation in the communities in the vicinity of the

installation, the time period during which the LRA will receive notices of interest from State and local

governments, representatives of the homeless, and other interested parties. This publication shall include

the name, address, telephone number and the point of contact for the LRA who can provide information

on the prescribed form and contents of the notices of interest. The LRA shall notify DoD of the deadline

specified for receipt of notices of interest. LRAs are smongly encouraged to make this publication as soon

as possible within the permissible 30 day period in order to expedite the closure process.

(i)

(ii)

(iii)

In addition, the LRA has the option to conduct an informal solicitation of notices of interest from

public and non-profit entities interested in obtaining property via a public benefit transfer other than

a homeless assistance conveyance under either40U.S.C.471 et. seq. or 49 U.S.C.4715 1-47153.

As part of such a solicitation, the LRA may wish to request that interested entities submit a

description of the proposed use to the LRA and the sponsoring Federal agency.

For all installations selected for closure or realignment prior to 1995 that elected to proceed under

Pub. L. 103-421, the LRA shall accept notices of interest for not less than 30 days.

For installations selected for closure or realignment in 1995 or thereafter, notices of interest shall be

accepted for a minimum of 90 days and not more than 180 days after the LRA’s publication under

5 176.20(c)(1).

(2) Prescribe the form and contents of notices of interest.

(i) The LRA may not release to the public any information regarding the capacity of the representative

of the homeless to carry out its program, a description of the organization, or its financial plan for

implementing the program, without the consent of the representative of the homeless concerned,

unless such release is authorized under Federal law and under the law of the State and communities

in which the installation concerned is located. The identity of the representative of the homeless

may be disclosed.

(ii) The notices of interest from representatives of the homeless must include:

(A)

(B)

(c)

(D)

(E)

A description of the homeless assistance program proposed, including the purposes to which

the property or facility will be pu~ which may include uses such as supportive services, job and

skills training, employment programs, shelters, transitional housing or housing with no

established Imitation on the amount of time of residence, food and clothing banks, treatment

facilities, or any other activity which clearly meets an identified need of the homeless and fills a

gap in the continuum of care;

A description of the need for the program;

A description of the extent to which the program is or will be coordinated with other homeless

assistance programs in the communities in the vicinity of the installation;

Information about the physical requirements necessary to carry out the program including a

description of the buildings and property at the installation that are necessary to carry out the

progranx

A description of the financial plan, the organization, and the organizational capacity of the

representative of the homeless to carry out the program; and,

December 1997 C-27
32 CFR Part 176: Revitalizing Base Closure Communities and Community Assistanc%Community

Redevelopment and Homeless Assistance

(d)

(F) An assessment of the time required to start carrying out the program.

(iii) The notices of interest from entities other than representatives of the homeless should specify the

name of the entity and specific interest in property or facilities along with a description of the

planned use.

(3) In addition to the notice required under $ 176.20(c)(I ), undertake outreach efforts to representatives of the

homeless by contacting local government officials and other persons or entities that maybe interested in

assisting the homeless within the vicinity of the installation.

(i) The LRA may invite persons and organizations identified on the HUD list of representatives of the

homeless and any other representatives of the homeless with which the LRA is familiar, operating in

the vicinity of the installation, to the workshop described in $ 176.20 (c)(3 )(ii).

(ii) The LRA, in coordination with the Military Department and HUD, shall conduct at least one

workshop where representatives of the homeless have an opportunity to:

(A) Learn about the closure/realignment and disposal process;

(B) Tour the buildings and properties available either on or off the installation;

(C) Learn about the LRA’s process and schedule for receiving notices of interest as guided by

$ 176.20(c)(2); and,

(D) Learn about any known land use constraints affecting the available property and buildings.

(iii) The LRA should meet with representatives of the homeless that express interest in discussing

possible uses for these properties to alleviate gaps in the continuum of care.

(4) Consider various properties in response to the notices of interest. The LRA may consider property that is

located off the installation.

(5) Develop an application, including the redevelopment plan and homeless assistance submission, explaining

how the LRA proposes to address the needs of the homeless. This application shall consider the notices of

interest received from State and local governments, representatives of the homeless, and other interested

parties. This shall include, but not be limited to, entities eligible for public benefit transfers under either

40 U.S.C. 471 et. seq.,or49U.S.C.47151-47 153; representatives of the homeless; commercial,

indusmial, and residential development interests; and other interests. From the deadline date for receipt of

notices of interest described at $ 176.20(c)( 1), the LRA shall have 270 days to complete and submit the

LRA application to the appropriate Military Department and HUD. The application requirements are

described at $176.30.

(6) Make the draft application available to the public for review and comment periodically during the process

of developing the application. The LRA must conduct at least one public hearing on the application prior

to its submission to HUD and the appropriate Military Department. A summary of the public comments

received during the process of developing the application shall be included in the application when it is

submitted.

Public benefit transfer screening.

The LRA should, while conducting its outreach efforts, work with the Federal agencies that sponsor public

benefit transfers under either 40U.S,C.471 et. seq. or 49 U.S.C. 47151-47153. Those agencies can provide a

list of parties in the vicinity of the installation that might be interested in and eligible for public benefit

transfers. The LRA should make a reasonable effort to inform such parties of the availability of the property

and incorporate their interests within the planning process. Actual recipients of property are to be determined

by the sponsoring Federal agency. The Military Departments shall noti~ sponsoring Federal agencies about

property that is available based on the community redevelopment plan and keep the LRA apprised of any

expressions of interest. Such expressions of interest are not required to be incorporated into the redevelopment

plan, but must be considered.

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DoD Base Reuse Implementation Manual

Section 176.25 HUD’s negotiations and consultations with the LRA.

HUD may negotiate and consult with the LRA before and during the course of preparation of the LR4’s

application and during HUD’s review thereof with a view toward avoiding any preliminary determination that the

application does not meet any requirement of this part. LRAs are encouraged to contact HUD for a list of persons

and organizations that are representatives of the homeless operating in the vicinity of the installation.

Section 176.30 LRA application.

(a) Redevelopment clan. A copy of the redevelopment plan shall be part of the application.

(b) Homeless assistance submission. This component of the application shall include the following:

(1) Information about hopelessness in the communities in the vicinity of the installation.

(i) A list of all the political jurisdictions which comprise the LRA.

(ii) A description of the unmet need in the continuum of care system within each political jurisdiction,

which should include information about any gaps that exist in the continuum of care for particular

homeless subpopulations. The source for this information shall depend upon the size and nature of

the political jurisdictions(s) that comprise the LRA. LRAs representing:

(A)

(B)

(c)

Political jurisdictions that are required to submit a Consolidated Plan shall include a copy of

their Homeless and Special Needs Population Table (Table 1), Priority Homeless Needs

Assessment Table (Table 2), and narrative description thereof from that Consolidated Plan,

including the inventory of facilities and services that assist the homeless in the jurisdiction.

Political jurisdictions that are part of an urban county that is required to submit a Consolidated

Plan shall include a copy of their Homeless and Special Needs Population Table (Table 1),

Priority Homeless Needs Assessment Table (Table 2), and narrative description thereof from

that Consolidated Plan, including the inventory of facilities and services that assist the

homeless in the jurisdiction. In addition, the LRA shall explain what portion of the homeless

population and subpopulations described in the Consolidated Plan are attributable to the

political jurisdiction it represents.

A political jurisdiction not described by 5176.30(b)(l)(ii)(A) or 5176.30(b)(l)(ii)(B) shall

submit a narrative description of what it perceives to be the homeless population within the

jurisdiction and a brief inventory of the facilities and services that assist homeless persons and

families within the jurisdiction. LIL%s that represent these jurisdictions are not required to

conduct surveys of the homeless population.

(2) Notices of interest proposing assistance to homeless persons and/or families.

(i)

(ii)

(iii)

A description of the proposed activities to be carried out on or off the installation and a discussion of

how these activities meet a portion or all of the needs of the homeless by addressing the gaps in the

continuum of care. The activities need not be limited to expressions of interest in property, but may

also include discussions of how economic redevelopment may benefit the homeless;

A copy of each notice of interest from representatives of the homeless for use of buildings and

property and a description of the manner in which the LFLA’s application addresses the need

expressed in each notice of interest. If the LR4 determines that a particular notice of interest should

not be awarded property, an explanation of why the LRA determined not to support that notice of

interest, the reasons for which may include the impact of the program contained in the notice of

interest on the community as described in 5 176.30(b)(2)(iii); and,

A description of the impact that the implemented redevelopment plan will have on the community.

This shall include information on how the LRA’s redevelopment plan might impact the character of

existing neighborhoods adjacent to the properties proposed to be used to assist the homeless and

December 1997 C-29
32 CFR Part 176: Revitalizing Base Closure Communities and Community Assistanc=Community

Redevelopment and Homeless Assistance

should discuss alternative plans. Impact on schools, social services, transportation, infrastructure,

and concentration of minorities and/or low income persons shall also be discussed.

(3) Legally binding agreements for buildings, propefiy, funding, andlor services.

(i) A copy of the legally binding agreements that the LRA proposes to enter into with the

representative(s) of the homeless selected by the LR4 to implement homeless pro=grams that fill gaps

in the existing continuum of care. The legally binding agreements shall provide for a process for

negotiating alternative arrangemen~ in the event that an environmental analysis conducted under

$176.45(b) indicates that any property identified for transfer in the agreement is not suitable for the

intended purpose. Where the balance determined in accordance with $176.30(b)(4) provides for the

use of installation property as a homeless assistance facility, legally binding agreements must

provide for the reversion or transfer, either to the LRA or to another entity or entities, of the

buildings and property in the event they cease to be used for the homeless. In cases where the

balance proposed by the LRA does not include the use of buildings or property on the installation,

the legally binding agreements need not be tied to the use of specific real property and need not

include a reverter clause. Legally binding agreements shall be accompanied by a legal opinion of the

chief legal advisor of the LRA or political jurisdiction or jurisdictions which will be executing the

legally binding agreemen~ that the ]egally binding qgeemen~, when executed, will constitute legal,

valid, binding, and enforceable obligations on the parties thereto;

(ii) A description of how buildings, property, funding, andlor services either on or off the installation

will be used to fill some of the gaps in the current continuum of care system and an explanation of

the suitability of the buildings and property for that use; and,

(iii) Information on the availability of general services such as transportation, police, and fire protection,

and a discussion of infrastructure such as water, sewer, and electricity in the vicinity of the proposed

homeless activity at the installation.

(4) An assessment of the balance with economic and other development needs.

(i) An assessment of the manner in which the application balances the expressed needs of the homeless

and the needs of the communities comprising the LRA for economic redevelopment and other

development; and,

(ii) An explanation of how the LRA’s application is consistent with the appropriate Consolidated Plan(s)

or any other existing housing, social service, community, economic, or other development plans

adopted by the jurisdictions in the vicinity of the installation.

(5) A description of the outreach undertaken by the LRA. The LRA shall explain how the outreach

requirements described at $176.20(c)(1) and $176.20(c)(3) have been fulfilled. This explanation shall

include a list of the representatives of the homeless the LRA contacted during the outreach process.

(c) Public comments. The LIU application shall include the materials described at $ 176.20(c)(6). These materials

shall be prefaced with an overview of the citizen participation process observed in preparing the application.

Section 176.35 HUD’s review of the application.

(a) Timing. HUD shall complete a review of each application no later than 60 days after its receipt of a completed

application.

(b) Standards of review. The purpose of the review is to determine whether the application is complete and, with

respect to the expressed interest and requests of representatives of the homeless, whether the application:

(1) Need. Takes into consideration the size and nature of the homeless population in the communities in the

vicinity of the installation, the availability of existing services in such communities to meet the needs of

the homeless in such communities, and the suitability of the buildings and property covered by the

application for use and needs of the homeless in such communities. HUD will take into consideration the

C-3C) December 1997
DoD Base Reuse Implementation Manual

size and nature of the installation in reviewing the needs of the homeless population in the communities in

the vicinity of the installation.

(2) Impact of notices of interest. Takes into consideration any economic impact of the homeless assistance

under the plan on the communities in the vicinity of the installation, including:

(i) Whether tie plan is fe=ible in light of demands hat would be placed on available social services,

police and fire protection, and infrastructure in the community; and,

(ii) Whether the selected notices of interest are consistent with the Consolidated Plan(s) or any other

existing housing, social service, community, economic, or other development plans adopted by the

political jurisdictions in the vicinity of the installation.

(3) Legally binding agreements. Specifies the manner in which the buildings. property, funding, andlor

services on or off the installation will be made available for homeless assistance purposes. HUD will

review each legally binding agreement to verify that:

(i) They include all the documents legally required to complete the transactions necessary to realize the

homeless use(s) described in the application;

(ii) They include all appropriate terms and conditions;

(iii) They address the full range of contingencies including those described at $176.30(b)(3)(i);

(iv) They stipulate that the buildings, property, funding, and/or services will be made available to the

representatives of the homeless in a timely fashion; and,

(v) They are accompanied by a legal opinion of the chief legal advisor of the LIL4 or political

jurisdiction or jurisdictions which will be executing the legally binding agreements that the legally

binding agreements will, when executed, constitute legal, valid, binding, and enforceable obligations

on the parties thereto.

(4) Balance. Balances in an appropriate manner a portion or all of the needs of the communities in the vicinity

of the installation for economic redevelopment and other development with the needs of the homeless in

such communities.

(5) Outreach. Was developed in consultation with representatives of the homeless and the homeless

assistance planning boards, if any, in the communities in the vicinity of the installation and whether the

outreach requirements described at $176.20(c)(1) and $176.20(c)(3) have been fulfilled by the LRA.

(c) Notice of determination.

(1) HUD shall, no later than the 60th day after its receipt of the application, unless such deadline is extended

pursuant to $ 176.15(a), send written notification both to DoD and the LRA of its preliminary

determination that the application meets or fails to meet the requirements of ~176.35(b). If the application

fails to meet the requirements, HUD will send the LRA:

(i) A summary of the deficiencies in the application;

(ii) An explanation of the determination; and,

(iii) A statement of how the LRA must address the determinations.

(2) In the event that no application is submitted and no extension is requested as of the deadline specified in

$176.20(c)(5), and the State does not accept within 30 days a DoD written request to become recognized

as the LR4, the absence of such application will trigger an adverse determination by HUD effective on

the date of the lapsed deadline. Under these conditions, HUD will follow the process described at

$176.40.

(d) Opportunity to cure.

December 1997 C-31
32 CFR Part 176: Revitalizing Base Closure Communities and Community Assistance-Community

Redevelopment and Homeless Assistance

(1) The LRA shall have 90 days from its receipt of the notice of preliminary determination under

$176.35(c)(1) within which to submit to HUD and DoD a revised application which addresses the

determinations listed in the notice. Failure to submit a revised application shall result in a final

determination, effective 90 days from the LRA’s receipt of the preliminary determination, that the

redevelopment plan fails to meet the requirements of ~176.35(b).

(2) HUD shall, within 30 days of its receipt of the LRAs resubmission, send written notification of its final

determination of whether the application meets the requirements of ~ 176.35(b) to both DOD and the

LRA.

Section 176.40 Adverse determinations.

(a) Review and consultation. If the resubmission fails to meet the requirements of $ 176.35(b) or if no

resubmission is received, HUD will review the original application, including the notices of interest submitted

by representatives of the homeless. In addition, in such instances or when no original application has been

submitted, HUD:

(1) Shall consult with the representatives of the homeless, if any, for purposes of evaluating the continuing

interest of such representatives in the use of buildings or property at the installation to assist the homeless;

(2) May consult with the applicable Military Department regarding the suitability of the buildings and

property at the installation for use to assist the homeless; and,

(3) May consult with representatives of the homeless and other parties as necessary.

(b) Notice of decision

(1) Within 90 days of receipt of an LRA’s revised application which HUD determines does not meet the

requirements of $ 176.35(b), HUD shall, based upon its reviews and consultations under $176.40(a):

(i) Notify DoD and the LRA of the buildings and property at the installation that HUD determines are

suitable for use to assist the homeless, and;

(ii) Notify DoD and the LRA of the extent to which the revised redevelopment plan meets the criteria set

forth in $176.35(b).

(2) In the event that an LRA does not submit a revised redevelopment plan under $ 176.35(d), HUD shall,

based upon its reviews and consultations under $176.40(a), notify DoD and the LRA of the buildings and

property at the installation that HUD determines are suitable for use to assist the homeless, either

(i) within 190 days after HUD sends its notice of preliminary adverse determination under

$176.35(c)(1), if an LRA has not submitted a revised redevelopment plan; or,

(ii) within 390 days after the Military Department’s Federal Register publication of available property

under $176.20(b), if no redevelopment plan has been received and no extension has been approved.

Section 176.45 Disposal of buildings and property.

(a) Public benefit transfer screening. Not later than the LRA’s submission of its redevelopment plan to DoD and

HUD, the Military Department will conduct an official public benefit transfer screening in accordance with the

Federal Property Management Regulations (41 CFR part 101-47.303-2) based upon the uses identified in the

redevelopment plan. Federal sponsoring agencies shall notify eligible applicants that any request for property

must be consistent witlt the uses identified in the redevelopment plan. At the request of the LIU, the Military

Department may conduct the official State and local public benefit screening at any time after the publication of

available property described at $176.20(b).

(b) Environmental analysis. Prior to disposal of any real property, the Military Department shall, consistent with

NEPA and section 2905 of the Defense Base Closure and Realignment Act of 1990, as amended (10 U.S.C.

2687 note), complete an environmental impact analysis of all reasonable disposal alternatives. The Military

C-32 December 1997
DoD Base Reuse Implementation Manual

Department shall consult with the LRA throughout the environmental impact analysis process to ensure both

that the LRA is provided the most current environmental information available concerning the installation, and

that the Military Department receives the most current information available concerning the LRA’s

redevelopment plans for the installation.

(c) Dis~osal. Upon receipt of a notice of approval of an application from HUD under $ 176.35(c)( 1) or

$176.35(d)(2), DoD shall dispose of buildings and property in accordance with the record of decision or other

decision document prepared under $176.45(b). Disposal of buildings and property to be used as homeless

assistance facilities shall be to either the LIL4 or directly to the representative(s) of the homeless and shall be

without consideration. Upon receipt of a notice ffom HUD under $ 176.40(b), DoD will dispose of the

buildings and property at the installation in consultation with HUD and the LRA.

(d) LRA’s resuonsibilitv. The LRA shall be responsible for the implementation of and compliance with legally

binding agreements under the application.

(e) Reversions to the LRA. If a building or property reverts to the LRA under a legally binding agreement under

the application, the LRA shall take appropriate actions to secure, to the maximum extent practicable, the

utilization of the building or property by other homeless representatives to assist the homeless. An LRA may

not be required to utilize the building or property to assist the homeless.

December 1997 C-33
32 CFR Part 176: Revitalizing Base Closure Communities and Community Assistanc&Community

Redevelopment and Homeless Assistance

C-34 December 1997